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					                       Assignment (2)
Self-study Questions (1-2-3-4-5-6-7-8-9-10) (page 74-75)

1-b

2-c

3-d

4-d

5-b

6-a

7-c

8-d

9-a

10-c



1-The normal balance of an account is on the side where a decrease in
the account is recorded

B-False



2-When a company earns revenues, owner's equity increases.

A-True



3-Companies initially record transactions in the general journal in
chronological order

A-True
4-An account will have a debit balance if the

C-Total of the debit amounts exceeds the credits



BE2-6 (page 75)
Date         account titles &explanation   debit   credit

Aug 1        cash (office advisor)         8000

                                                   8000

Aug 4        cash (pay insurance for 6M)           1800

                                           1800

Aug 16       cash (receives for client )    800

                                                   800

Aug 27       cash (salary for secretary)    1000

                                                   1000




E2-9 (page 78)


Dr.          Cash                Cr.

1aug-5000              12aug-1000

10aug-2400
31aug-900



7300



Dr.          capital                 Cr.

                         1aug-5000
Dr.          receivable             Cr.

25aug-1600         31aug-900




700



Dr.          revenue          Cr.

                    10aug-2400

                   25aug-1600




                       4000




Dr.          payable           Cr.

                    12aug-4000




                    4000
Dr.          equipment          Cr.

12aug-5000




5000



                          Teresa gonzales

                           Trial Balance

                          August 31, 2008



                          Debit                      credit

Cash                     5000

                         2400

                         900

                                                1000

Equipment                5000



Accounts receivable      1600                       900



Capital                                             5000

Revenue                                             4000

Payable                                             4000

 Balance                  14900             14900
Date    Account Titles and Explanation          Debit     Credit
10/1    cash ……………………………………………………………            5000

        Heerey capital ………………………………………….                    5000

                 (Owner’s investment of cash in business)
10/3     furniture ……………………………………………………           2000

10/3     accounts payable…………………………………………                   2000

10/4     supplies ………………………………………………………….         400

10/4      cash………………………………………………………………..                    400

10/6      service revenue……………………………………………..                 800

10/6       .……………………………………….        800

10/10      cash ……………………………………………………………….         4000

            ……………………………………………………………………            680

10/10        notes payable ………………………………………………                  4000

10/10     service revenue…………………………………………………                   640

12/10      accounts payable…………………………………………………. 1500

12/10      cash…………………………………………………………………….                    1500

15/10      rent expense ……………………………………………………….     250

15/10      cash………………………………………………………………………….                  250

20/10     cash…………………………………………………………………………….. 500

20/10    service revenue……………………………………………………………..             940

20/10     accounts receivable…………………………………………………….. 940

20/10      accounts receivable……………………………………………………..          500

25/10      cash…………………………………………………………………………………. 2000

25/10    Heerey capital …………………………………………………………………           2000

30/10    cash………………………………………………………………………………….                  300

30/10    heerey drawing…………………………………………………………………… 300

31/10     store wages expense………………………………………………………..500
31/10

cash………………………………………………………………………………………………………………………………….500



                                            Heerey company

                                           Trial Balance
                                            31 october 2008

                                                                               Debit    Credit

Cash.............................................................................5000

……………………………………………………4000

……………………………………………………..2000

……………………………………………………..500

…………………………………………………………………                                                                400

………………………………………………………………….1500

…………………………………………………………………..250

…………………………………………………………………..300

………………………………………………………………….500

accounts receivable…………………………..940
…………………………………………………………..500
Heerey capital………………………………………….5000
…………………………………………………………..2000
Furniture……………………………………..2000

heerey drawing……………………………300


service revenue………………………………………………………………800
………………………………………………………………………………………….940

………………………………………………………………………………………….640

store wages expense………………………………………………………..500

accounts payable……………………………………………. 1500

………………………………………………………………………………………2000

supplies ………………………………………   400

        notes payable ……………………………………………… 4000

rent expense ……………………………………………………….    250

				
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